Ford will offer a new generation of seven, all-electric, fully-connected passenger vehicles and vans in Europe by 2024. The announcement builds on the recent creation of the Ford Model e business unit focused on the design, production, and distribution of electric and connected vehicles (earlier post).
With its extended range of electric passenger and commercial vehicle models, Ford expects its annual sales of electric vehicles in Europe to exceed 600,000 units in 2026, and also reaffirmed its intention to deliver a 6% EBIT margin in Europe in 2023. The acceleration in Europe supports Ford’s goal to sell more than 2 million EVs globally by 2026 and deliver company adjusted EBIT margin of 10%.
Following the successful European introduction of the all-electric Mach-E in 2021 and Mach-E GT this year, plus the launch of the E-Transit in the next quarter, Ford today unveiled plans for seven more all-electric vehicles to join the Ford family in Europe—three new passenger vehicles and four new commercial vehicles.
Ford will have nine electric cars and vans on the market in Europe in 2024.
Starting in 2023, Ford will begin production of an all-new electric passenger vehicle, a medium-sized crossover based on Volkswagen’s MEB platform (related post), built in Cologne with a second electric vehicle added to the Cologne production line-up in 2024. In addition, Ford’s top-selling passenger vehicle in Europe, the Ford Puma, will be available as an electric version made in Craiova, Romania, starting in 2024.
Ford’s iconic Transit range will include four new electric models—the all-new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.
Ford confirmed that the first volume all-electric passenger vehicle to come out of the Ford Cologne Electrification Center will be a five-seat, medium-sized crossover. In 2021, sports utilities and crossovers accounted for 58% of all Ford passenger vehicle sold in the continent, up nearly 20 percentage points from 2020.
The all-electric crossover breaks new boundaries for Ford. Capable of a 500 km driving range on a single charge, the vehicle and its name will be revealed later in 2022, with production commencing in 2023.
The confirmation that a second, all-electric passenger vehicle—a sports crossover—will be built at the Ford Cologne Electrification Center means that electric vehicle production at the facility will increase to 1.2 million vehicles over a six-year timeframe.
Investment in the new electric passenger vehicles to be built in Cologne is expected to be $2 billion. The investment includes a new battery assembly facility scheduled to start operations in 2024.
New battery gigafactory in Turkey. To support Ford’s vehicle electrification plans, Ford, SK On Co., Ltd. and Koç Holding have signed a non-binding Memorandum of Understanding for a new, industry-leading joint venture business in Turkey. Subject to execution of a final agreement, the three partners plan to create one of the largest EV battery facilities in the European wider region.
The joint venture would be located near Ankara and will manufacture high Nickel NMC cells for assembly into battery array modules. Production is intended to start as early as mid-decade with an annual capacity likely to be in the range of 30 to 45 Gigawatt hours.
The investment the three partners are planning in the battery joint venture—including support from the Turkish Government—will directly benefit large and small commercial vehicle operators across Europe, reducing energy and running costs and providing a significant contribution to CO2 reduction.
Boosting EV manufacturing capacity in Craiova. Ford’s manufacturing plant in Craiova, Romania, will play a significant role in the company’s electric and commercial vehicle growth plans in Europe.
From 2024, European customers will be able to purchase an all-electric version of the Ford Puma, Ford’s popular compact crossover. The Puma was Ford’s best-selling passenger vehicle in Europe in 2021, and the all-electric Puma will bring this successful new nameplate to an even wider group of European customers when it goes into production in Craiova in 2024.
Additionally, the all-new Transit Courier, the popular light commercial vehicle, and Tourneo Courier, a compact multi-purpose vehicle, will also be produced in Craiova from 2023, with all-electric versions coming in 2024.
To further boost electric and commercial vehicle capacity, Ford announced that Ford Otosan will assume ownership of the Craiova plant and manufacturing business, subject to regulatory approval and consultation. Ford Otosan, a joint venture between Ford Motor Company and Koç Holding, is one of the longest running and most successful joint ventures in the global auto industry.